A firm that has economies of scale:

A) at low output and diseconomies of scale at high output is a natural monopoly.
B) over the entire range of output demanded is a natural monopoly.
C) at any particular level of output is a natural monopoly.
D) has a continually rising long-run average cost curve.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Natural Monopoly

A monopoly that exists when increasing returns to scale provide a large cost advantage to having all output produced by a single firm.